Sai Life Sciences shares jump 9%, multibagger stock rallies 19% in 3 days after Q2 results. Why Jefferies hiked target price
Sai Life Sciences shares hit a fresh 52-week high on Monday after strong Q2 results and bullish brokerage commentary. Jefferies retained its Buy rating and raised its target price to Rs 2,050, citing healthy CRO and CDMO growth, a strengthening pipeline and improved earnings prospects.
Shares of Sai Life Sciences surged another 9% on Monday, leading to a 19% increase over three sessions following the pharmaceutical research and manufacturing firm's Q2 results. Brokerages remained optimistic and raised target prices in response to the company's strong financial performance. Sai Life shares had already climbed 12% on Friday after the Q2 announcement, before experiencing a minor dip during Muhurat Trading on Sunday. The stock rebounded on Monday, reaching a new 52-week high of Rs 1,897.30 per share on the NSE.
The company disclosed a net profit of Rs 98 crore for the July-September quarter of FY27, up 17% from Rs 84 crore in the same quarter last year. Revenue from operations grew 23% year-over-year to Rs 659 crore in Q2 FY27, compared to Rs 537 crore in Q2 FY26. EBITDA also increased 20% year-over-year to Rs 187 crore from Rs 156 crore in the preceding quarter. However, the PAT margin slightly decreased to 15% from 16% in the corresponding period last year.
Jefferies maintained its 'Buy' recommendation on Sai Life Sciences shares but raised the target price to Rs 2,050 from Rs 1,610, indicating an 18% upside potential from the stock's previous closing price of Rs 1,744. The brokerage highlighted the company's strong performance, driven by robust growth in contract research organization (CRO) and contract development and manufacturing organization (CDMO) services.
Sai Life Sciences continues to be one of Jefferies' most favored CRODMO names due to its strong relationships with Big Pharma, integrated CRDMO offering, and expanding capabilities in niche technologies. Jefferies increased its FY27-29 EPS estimates by 3-19% based on higher revenue growth projections, justifying the target price hike.
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